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Score Your Financial Health

Your financial well-being is about more than your income or credit score. Answer 10 simple questions about how you spend and save — and then see how to improve your financial future.

How to improve your financial well-being

You’re financially healthy if you can cover all of your needs, some of your wants and save for the future.

Financial well-being is hard to capture in a single number. A great credit score, for example, means that you can borrow money cheaply, but it doesn’t guarantee that your debt will be manageable. The Consumer Financial Protection Bureau, after rigorous research, developed a scale to measure well-being that considers financial distress, financial security and the capability to enjoy life.

The CFPB findings highlight that a safety net of savings has a strong influence on financial stability. Start with these basics:

Build an emergency fund. You can start small. Having as little as $250 in the bank can protect you from going into debt over every unexpected expense that pops up.

Set up a budget. Knowing how much money is coming in and having a plan for it helps achieve goals faster.

Pay down debt. The Debt Payoff Calculator below lets you view all your debts in one place. See how paying a little more than before can make a big difference — and can help you pick a payoff strategy.

Once you’ve tackled those three tasks, you’ll be able to set longer-term goals, such as saving for retirement.

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.